Since the beginning of this year, under the influence of multiple factors such as intensified geopolitical conflicts, rising protectionism and fluctuating energy prices, the external situation faced by China's textile industry has become more complex and severe. However, supported by the large-scale domestic demand market in our country, the textile industry has fully leveraged the efficient operation advantages of its complete industrial system, overcome difficulties, actively explored both domestic and international markets, and optimized the production and sales rhythm. The negative impact of international factors on the stable operation of the industry has been effectively controlled. In the first quarter, the main operational indicators of the industry, including production, domestic sales, exports, and investment, all achieved positive growth. Overall, a stable start has been achieved. Looking forward to the next stage, the textile industry still needs to actively address risks and challenges such as continued weak external demand, fluctuating raw material prices, and intensified market competition, and strive to achieve stable and orderly economic operation of the industry.
The growth rate of production has stabilized and is gradually slowing down.
After the Spring Festival this year, the resumption of production in textile enterprises has generally been in good condition. However, since March, due to the escalation of the situation in the United States, Israel and Iraq, which led to a high-level fluctuation in the prices of textile raw materials, the utilization level of enterprises' production capacity has experienced a temporary decline. The growth rate of the industry's production in the first quarter slightly slowed down. According to data from the National Bureau of Statistics, in the first quarter, the capacity utilization rates of the textile industry and the chemical fiber industry were 76.5% and 84.7% respectively， down by 1.3 and 1.6 percentage points compared with the same period of the previous year. Nevertheless， they were still better than the national industrial average of 73.6% during the same period. In the first quarter， the industrial added value of the textile enterprises increased by 3.9% year-on-year， with the growth rate falling by 1.4 percentage points compared with the same period of the previous year. The industrial added value of the entire industrial chain achieved positive growth， and sub-sectors such as wool textile， silk textile and silk products maintained a relatively good double-digit growth momentum. Among the 15 major textile products in the statistics of the National Bureau of Statistics， the production of 10 major products such as chemical fibers， cloth， printed and dyed cloth， non-woven fabric and clothing achieved stable growth.
Domestic sales achieved a significant increase.
In the first quarter of this year, China's macroeconomy started off well. The country deeply implemented the action plan to boost consumption, and the expectations for residents' employment and income growth improved. Holiday consumption remained active, which supported the growth of domestic sales of China's textile and clothing products. According to data from the National Bureau of Statistics, in the first quarter, the per capita expenditure on clothing by urban residents increased by 5.6% year-on-year, which was 4.4 percentage points higher than the same period last year. During the same period, the retail sales of clothing, shoes, hats, and textile products by limited-scope enterprises increased by 9.3% year-on-year, with the growth rate rising by 5.9 percentage points compared to the same period last year. New business models and new forms of consumption have flourished, high-quality supply has become increasingly abundant, and the multi-level logistics system has been continuously improved. As a result, online retail channels have achieved rapid growth. In the first quarter, the online retail sales of clothing products across the country increased by 11.6% year-on-year, with the growth rate rising by 11.7 percentage points compared to the same period last year.
The export situation is experiencing a gradual increase under pressure.
Since the beginning of this year, the conflict between the United States and Israel over Iraq has continued to escalate, pushing up global production and logistics costs, disrupting international supply chains, and suppressing the recovery of the consumption sector. The export situation faced by the textile industry remains rather severe. Foreign trade enterprises have actively responded, accelerating the diversification of market layouts, promoting the expansion of new business models such as cross-border e-commerce, and focusing on stabilizing orders and expanding markets. Despite the fact that the previous year's "rush to export" to the United States pushed up the base level, the export volume in the first quarter still achieved growth, reaching a relatively high level for the same period in the past four years. According to data from China's customs, in the first quarter of this year, the total export value of textile and apparel products (including products in Chapter 94) of China was 71.3 billion US dollars, increasing by 1.4% year-on-year, with a growth rate 0.7 percentage points higher than that of the previous year. Among them, the competitiveness of textile exports was relatively stable, with an export volume of 36.29 billion US dollars, increasing by 2.6% year-on-year; under the relatively relaxed Sino-US economic relations, the pressure on clothing exports has eased, with an export volume of 35.01 billion US dollars, increasing slightly by 0.2% year-on-year. The export situation to major markets continued to show a differentiated trend, with the export volumes to the United States, Japan, and the ASEAN region shrinking year-on-year, but the export growth rates to Russia, Australia, Germany, India, and Brazil reached double digits or more.
The improvement in enterprise efficiency has been slow.
In the first quarter of this year, the operating conditions of textile enterprises were generally stable. However, due to still relatively weak demand and rising raw material costs, the pressure for recovery and improvement remained significant. According to data from the National Bureau of Statistics, in the first quarter, the operating income of 37,000 large-scale textile enterprises across the country decreased slightly by 0.4% year-on-year, with the growth rate dropping by 1.4 percentage points compared to the same period last year; the total profit and the profit margin per operating income were roughly the same as those of the same period last year. Among the main links of the industrial chain, the sub-sectors such as linen textiles, silk, filament weaving, and textile machinery had better performance compared to the same period last year, but the downstream sub-sectors such as printing and dyeing, knitting, clothing, home textiles, and industrial uses showed different degrees of reduction in total profit compared to the same period last year.
The growth rate of investment has declined at a high level.
In the first quarter of this year, textile enterprises focused on key areas and weak links to continue promoting technological transformation and upgrading towards higher-end, intelligent and green standards. However, due to the pressure on profits and the relatively high base in the same period last year, the investment growth rate of some sub-sectors of the industrial chain has declined. According to data from the National Bureau of Statistics, the fixed asset investment completed amount (excluding households) in China's textile industry in the first quarter increased by 17.6% year-on-year, with the growth rate accelerating by 4.1 percentage points compared to the same period last year; the investment in the chemical fiber industry and the clothing industry decreased by 4.1% and 11.8% respectively year-on-year, ending the consecutive positive growth trend in the past two years.
Withstanding pressure and adapting to changes, deepening and transforming.
The year 2026 marks the beginning of the "15th Five-Year Plan". Looking ahead for the entire year, the development environment faced by the textile industry remains generally complex and challenging. The ongoing international geopolitical conflicts will gradually spread their negative impact throughout the production, circulation and consumption chains, posing challenges to the flexible adaptability of textile enterprises. The industry's exports and profits will still face pressure in the short term. However, at the same time, China's macro policies are comprehensively promoting "stimulating consumption" and "improving people's livelihood", and deeply implementing the action plan to boost consumption, which will accelerate the release of potential demands in areas such as national style and trend, outdoor sports, health and elderly care, experiential economy, and intelligent products, playing a core role in supporting the stable development of the textile industry. Relevant government departments will implement the high-quality development tasks for the "15th Five-Year Plan", adopt multiple measures to deeply rectify "internal competition" style, and gradually release policy benefits such as digital special green credit, opening up an important window period for textile enterprises to deepen transformation and upgrading, activate new quality productive forces, and strive to prevent and defuse external risks, ensuring stable and positive economic performance throughout the year and achieving a good start for the "15th Five-Year Plan".
Source: China Textile Association Industry Economic Research
